Q4 2024 Rupa & Company Ltd Earnings Call Transcript
Key Points
- Rupa & Co Ltd (BOM:533552) achieved a healthy 17% annual growth in volume, driven by a 16% growth in the economy segment, 17% in mid-premium segment, and 25% growth in the premium segment.
- The company reported a 48% year-on-year growth in EBITDA for Q4 FY24, with EBITDA margins improving by 340 basis points to 10.1%.
- Rupa & Co Ltd (BOM:533552) significantly reduced its net debt from INR134 crores to INR6 crores as of March 2024.
- The company invested approximately INR66 crores in branding and advertising, enhancing brand visibility and contributing to increased sales volumes.
- Rupa & Co Ltd (BOM:533552) launched new pilot projects under the Pragati Scheme, a loyalty program for retailers, which is expected to improve secondary sales mapping and retailer engagement.
- Despite a 17% growth in volume, the company's revenue grew by only 6.4% year over year, indicating pricing challenges.
- Initiatives to boost revenue from export, thermal wear, and the women's segment did not materialize in FY24.
- The company decided to discontinue licensed brands FOTL and FCUK due to underperformance post-COVID disruption.
- Working capital increased from INR736 crores in December to INR762 crores, raising concerns about cash flow management.
- Rupa & Co Ltd (BOM:533552) acknowledged losing some market share to competitors, with a lower growth rate compared to peers.
Ladies and gentlemen, good day, and welcome to the Q4 and FY24 earnings conference call of Rupa & Company Limited hosted by Orient Capital.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Sumeet Khaitan from Orient Capital. Thank you, and over to you, Mr. Sumeet.
Good evening, everyone. Thank you for joining us on the call today. We are joined by the management of Rupa & Company Limited represented by Mr. Vikash Agarwal, Wholetime Director; and Mr. Sumit Khowala, CFO. They will take you through the results and the business performance, post which we will open the forum for Q&A session.
With this, now I hand
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